Where is the market headed?

Since the beginning of the year, inventory of houses for sale have been relatively stable hovering just over 11,000 homes per week. This is substantially lower than last year's numbers which were consistently in the 18,500 range. Sales have been consistent with just over 600 houses going under contract per week. This is an increase over last year's numbers which were in the 475 range. The result is that we have moved from an average of an 8 month supply of houses to just over 4 months - a more balanced market. Agents are seeing better traffic at listings and when they are out showing. Additionally, builders are selling more houses, are cutting back on incentives they were offering last year and in some cases, raising prices. Mortgage rates have risen slightly which is typical this time of year as the Spring market approaches, but lenders are still getting calls for approval letters. Another factor affecting our market is job creation. We continue to be in the top five areas in the country that creates new jobs. As a result, we have one of the lowest unemployment rates in the country as well. These are both positive indicators for the housing market and in turn for you if you are considering making a move any time soon.

Does this mean everyone is going to be in good shape in our area? I don't think so. The vacancy rate of houses for sale is 34.5% which is still high. Many of those houses have been for sale for a long time, which results in anxious owners willing to negotiate. In some cases, these sellers have given up and we are seeing more foreclosures come on the market. Other times we see these properties get negoitated with the bank as short sales. We have several agents that are dealing with banks working out these types of agreements for both buyers and sellers.